Why is Bitcoin still a slave of Fiat? - page 9.

Kingjagat

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Quote from: Harry Hood on June 22, 2015, 02:13:30 AM

Bitcoin is tied to fiat because that's what people have to use to buy bitcoin with. Once people are getting paid in bitcoin (which likely will never happen) or using bitcoin exclusively (could very well happen) you'll see lest talk about bitcoin tied to fiat and more about what bitcoin can buy in goods and services.

I think If people hold their Bitcoin, the available inventory starts to dry up and the price goes up (even though the total supply keeps increasing). Of course the opposite happens when the big holder discards. Increase in supply and available prices Ho down.
It is important to remember that it is not the total supply that is important in the supply / demand equation. It's an available supply that matters.

dupee419

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Fiat money is the most easiest way to spend something on it, step outside and go to the malls, do you see any stores that accept bitcoin? No right? though there are some stores that do accept bitcoin but it is very rare to see one, and fiat is most likely the normal way people earn through their jobs, and that is why bitcoin may be not fully utilised through this day.

laravuemaster

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Quote from: MoneroExpress on April 30, 2015, 12:00:51 PM

Why is Bitcoin tied to Fiat? Why is Bitcoin value moving like a stock? satoshi said the value will be derived by the limit of total coins. But we are seeing the opposite. Why dont we mathematically calculate the value of bitcoin according to the amount of bitcoin mined?

Like

Agreed Value * Bitcoins Mined = New Value

0.0010 * 1 = 0.0010
0.0010 * 2 = 0.0020

Bitcoins is not tied to fiat, the only reason why bitcoins now has a very high price in the market is because of the people who are investing on the coin and it makes the price to increase even more as the time goes by.

BartS

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Quote from: Gagamboy on May 26, 2018, 06:53:50 AM

It is not slave of fiat. Sooner bitcoin can replace fiat if people wanted to.

Things are not so simple, in theory a better product should replace an outdated product every time but that doesn't always happen, you need to understand that there is government intervention and they are not going to let bitcoin to replace fiat, they obtain a lot of power and money out of the right they have to print their own currency and they are not going to give up that right without a fight, it is possible that in the future bitcoin is subject to very heavy regulation or even banned, that is not going to destroy bitcoin but that is going to severally limit its adoption.

Gagamboy

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It is not slave of fiat. Sooner bitcoin can replace fiat if people wanted to.

zhanghoqi5

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Unless the BTC is widely accepted and is recognised as a real currency, it will always be compared with fiat.

Bitcoin must be attached to legal tender to gain value, otherwise it is worthless.

inesterdd

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Because it is used as a valuable asset, not a means of payment in the economy. For example, gold is also tied to a phiatic currency!

Bonsaiav

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Bitcoin isn't a Fiat slave we're the true Fiat slaves. Bitcoin is only an asset that can 'WE' treat as anything, either as an asset, as a medium of payment or a tool of trade like gold.
Bitcoin will remain a bitcoin will and probably replace Fiat, if the government simultaneously for legalizes bitcoin to be used as a transaction tool.

A L I E N

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Quote from: bib24 on May 22, 2018, 07:19:40 PM

It is because all transactions involves fiat, bitcoin in the other hand has a limited access only. At the end of the day we still need to convert our coins to fiat so we can used it for our daily activities.

I would never call Bitcoin the fiat slave. First of all, BTC is not the real money. Secondly, they simply cannot be compared. And they will be always connected.

Chachacoin17

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Quote from: Ryker1 on May 23, 2018, 07:10:53 AM

Quote from: jgaspar on May 02, 2018, 07:34:21 PM

I think the price of bitcoin is surely depends on demand that we, as traders and investors create, without it - bitcoin is worthless

I agree with you, bitcoin depends on the users and investors demand. Since fiat is the currency of the country, it also depends on how much the price change or how much its value. I also think the same, bitcoin is not really a slave of fiat, bitcoin just need fiat, because bitcoin is converted to fiat so we can buy with it. I agree that without fiat, bitcoin is worthless, because we buy things with our own country's currency, I think that's why.

Fiat is the widely recognized medium of exchange, has legal tender, and is controlled by the government. In the evolution of Bitcoin, many are still unaware of its functionalities, and more fear its volatility. I think the reason why bitcoin is still a slave of fiat because it's dependent on it, it's economy is still young, it's not yet generally accepted and it mostly depends on the demand of consumers.

cryptoalfs76

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Quote from: MoneroExpress on April 30, 2015, 12:00:51 PM

Why is Bitcoin tied to Fiat? Why is Bitcoin value moving like a stock? satoshi said the value will be derived by the limit of total coins. But we are seeing the opposite. Why dont we mathematically calculate the value of bitcoin according to the amount of bitcoin mined?

Like

Agreed Value * Bitcoins Mined = New Value

0.0010 * 1 = 0.0010
0.0010 * 2 = 0.0020

Definetly bitcoin,is not a slave in fiat,they are working together to create there own monopoly into the world of cryptocurrency,while in other hand bitcoin value is moving like a stock that known like each other because cryptocurrency is volatility and its depends on the demand in the exchange market and same also happen in the stock market its depend on the stocks supply of there local market demand.

Damn3d

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Yes, I agree, that bitcoin is depending not only on a math, but also on the people and news, and whales, and on the mysterious shit causes it to fall xD

Ryker1

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Quote from: jgaspar on May 02, 2018, 07:34:21 PM

I think the price of bitcoin is surely depends on demand that we, as traders and investors create, without it - bitcoin is worthless

I agree with you, bitcoin depends on the users and investors demand. Since fiat is the currency of the country, it also depends on how much the price change or how much its value. I also think the same, bitcoin is not really a slave of fiat, bitcoin just need fiat, because bitcoin is converted to fiat so we can buy with it. I agree that without fiat, bitcoin is worthless, because we buy things with our own country's currency, I think that's why.

Sum24

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Quote from: lastnumber on May 22, 2018, 11:38:05 AM

I do not think Bitcoin is a slave to Fiat. Everything has its rules. Fiat was born and developed in a very long time with the development of society. And in the future, Fiat retains its own values. Bitcoin was born and developed to this day only a few decades ago. It is clear that Bitcoin has made a great leap forward in calculating the time-to-value ratio. We should not ask Bitcoin to replace Fiat right now. That does not conform to the rules of trade development.

Bitcoin has amazing past and a bright future it is not a slave and it will never be. Bitcoin has high demand and very good price pumping dumping nature which increase the demand even more because fiat will remain the same forever and it will not give profit to the users so for me bitcoin is golden currency which gives you profit and you can use it to buy goods and get saving as it use to increase in price while money remain the same so no profit can be expected from fiat and bitcoin is the king of all other currency.

bib24

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It is because all transactions involves fiat, bitcoin in the other hand has a limited access only. At the end of the day we still need to convert our coins to fiat so we can used it for our daily activities.

baconlike

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Quote from: lynlyn on May 08, 2018, 03:46:03 AM

Quote from: bib24 on May 02, 2018, 07:23:20 PM

Even bitcoin is very popular nowadays but still can't defeat fiat currencies. Fiat is legal and acknowledge in the world market, its use is unlimited. We hope that bitcoin will continue its progress in future and surpass its limited capacity.

My friend its not a good used that term to describe the bitcoin from fiat.Bitcoin is not a slave but a helpful currency to convert fiat and have a unity to people's needed financially.

Fiat is the currency of the country. They are highly liquid, they are not easy to be replaced by the BTC, although the BTC is currently developing but still has many shortcomings and risks. It is impossible to replace Fiat now and in the future.

Herbys

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I think that Bitcoin's cost is conditioned by supply and demand - the main elements of the market mechanism.

BartS

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Quote from: MoneroExpress on April 30, 2015, 12:00:51 PM

Why is Bitcoin tied to Fiat? Why is Bitcoin value moving like a stock? satoshi said the value will be derived by the limit of total coins. But we are seeing the opposite. Why dont we mathematically calculate the value of bitcoin according to the amount of bitcoin mined?

Like

Agreed Value * Bitcoins Mined = New Value

0.0010 * 1 = 0.0010
0.0010 * 2 = 0.0020

Because everything is tied to fiat, did you really expect that bitcoin out of nowhere will not be tied to fiat? Because that is not the way it works even human labor and time is measured in fiat, the only way that changes is if bitcoin is able to replace the current fiat system something very unlikely by the way, so for the moment the only thing that you can do is to accept that fact and either take advantage of it or wait until the date that is no longer the case, and since we have no idea when that day is going to come people have decided to try to take advantage of it and that is why they speculate with the price.

lastnumber

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I do not think Bitcoin is a slave to Fiat. Everything has its rules. Fiat was born and developed in a very long time with the development of society. And in the future, Fiat retains its own values. Bitcoin was born and developed to this day only a few decades ago. It is clear that Bitcoin has made a great leap forward in calculating the time-to-value ratio. We should not ask Bitcoin to replace Fiat right now. That does not conform to the rules of trade development.

LeaderAMB

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Quote from: shelimy on May 06, 2018, 06:10:07 AM

Unless it gets accepted widely, and that people take it as a real currency rather than virtual money, it will always be compared with Fiat. Though, there are still places where Bitcoins are accepted and so, due to the acceptance, value doesn't matter for them there.

Always some countries may accept bitcoin but jut a few of country. Besides, there have too many countries that don’t accept bitcoin, even most of governments baned bitcoin in their country agressively. Fiat is truly a traditional currency and a mean of transaction that humen being have been using for long time and still a stable payment but bitcoin is not. Indeed bitcoin is used worldwidely, but it’s still too small number of people know about it. it’s hard for bitcoin to be accepted.

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